Kin of ex-CJI asked to pay Rs. 2.2 crore tax due

The Income Tax authorities have slapped a demand notice on P.V. Sreenijin and his wife K.B. Sony, son-in-law and daughter of the former Chief Justice of India K.G. Balakrishnan, asking them to cough up a tax due of Rs. 2.2 crore for the period between 2007-08 and 2009-10.

The demand was raised last month after an enquiry into the alleged undisclosed income of the couple was conducted by the department’s investigation wing based on a whistle-blower complaint in December, 2010.

It necessitates Mr. Sreenijin and his wife, both lawyers, to either fork out the outstanding tax amount to the government or go in appeal to the Commissioner of Income Tax (CIT) and further, if needed, to the Income Tax Appellate Tribunal (ITAT).

Mr. Sreenijin chose not to respond to calls and messages from The Hindu on the issue.

The I-T authorities earlier unearthed massive hidden wealth possessed by M.J. Benny, another son-in-law of the ex-CJI who was asked to remit Rs. 1.2 crore which he complied with.

Besides demanding tax on wealth accrued, it is not within the powers of the IT department to find out how assets were acquired, the officials maintained.

Probing the means of acquisition, they said, is the job of the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).

I-T officials who investigated Mr. Sreenijin’s assets remarked that his family income had grown stupendously since 2006, when his declared assets were valued at just Rs. 4.63 lakh, as per his election affidavit.

The investigation report lists out the ostensibly undervalued acquisition of movable and immovable assets by Mr. Sreenijin and his wife since 2006.

It alleges that they purchased 36 cents of land at Varapuzha for Rs 7 lakh; 30 cents of land at Keerthinagar in Kaloor for Rs. 30 lakh in June, 2009 (when the prevailing market rate was Rs 8 lakh a cent); residential property measuring 3.5 cents in his mother’s name adjacent to the property in Kaloor; a flat at Edapally; and 2.75 acres of land at Annamanada in Thrissur at Rs 1.14 crore in November 2008 besides buying office space in Ernakulam town.

The couple is also stated to have operated at least five bank accounts, with cash deposits between Rs 2 lakh and Rs 20 lakh in each.

While Mr. Sreenijin had a deposit of Rs. 9 lakh in a leading private bank in Edapally, his wife had deposited Rs. 10 lakh in the same bank, the report reveals. The I-T investigation report hints at the possibility of the duo enjoying substantial holdings as ‘sleeping partners’ in many business enterprises, including an Aluva-based real estate firm.

The findings also show that various private limited companies and promoters of companies, including diamond firms in Mumbai, were paying the couple hefty sums as ‘consultancy charge’ during Mr. Balakrishnan’s term in office as CJI.

The report cites instances of Rosy Blue (India) Private Limited — a firm dealing in diamonds — paying the couple Rs. 1 lakh each almost every month between July 2006 and March 2010 and Amity Housing and Resorts (India) Private Limited in Aluva allegedly disbursing a monthly retainer of Rs. 1.5 lakh for consultancy services.

Of the Rs. 2.2 crore demanded by the tax authorities, Mr. Sreenijin’s share is about Rs. 1.4 crore. The couple has a month’s time to pay up or resort to appeal.

This is what relatives and son earned when KGB was head.. imagine what KGB himself would have earned..

from:
Amol

Posted on: Apr 22, 2013 at 00:56 IST

This is direct slur on the judiciary. Whys doesn't the honorable supreme court otherwise so active on all other issues, take suo-moto notice of this news report and order a SIT on this?

from:
suresh

Posted on: Apr 21, 2013 at 19:42 IST

Consultancy is great word that covers many sons, daughters, sons-in law and even keep their cash safe. Only in India and that too Judges and Ministers can afford such conveniences to their chidren. Wonderful parents indeed ! Once this C J of India said "Twenty percent of judiciary is corrupt" Is he included ?

from:
K C Thomas

Posted on: Apr 21, 2013 at 16:45 IST

Without the former chief justice's knowledge this would not have happened.

from:
Vasu Menon

Posted on: Apr 21, 2013 at 13:19 IST

Mr Balakrishnan should be ashamed that he gave judgement on other peoples but failed to make his family members adhere to land of law.

from:
santosh

Posted on: Apr 21, 2013 at 12:51 IST

Although it is not within the powers of the IT department to find out how assets were acquired,they should pass on information to ED / DRI for action at their end and if corrupt UPA obstructs, let it be leaked so that govt. is forced into taking action.

from:
Atma Gandhi

Posted on: Apr 21, 2013 at 08:37 IST

but what about KGB. The kin could not had amassed the wealth without the assistance of KGB. His role must be investigated fully.

from:
kcgovil

Posted on: Apr 21, 2013 at 08:36 IST

We MUST start attesting/recording/mentioning the religion-caste-place of origin of every individual involved in every activity affecting our national interests, both economically and socially.
This will help us get a better understanding of the various religious-caste-regional groups that make up this great country of ours-------and, if the peculiarities/traits/attitudes are distinctly 'markable', then we can make more scientific provisions as regards reservations, quotas, privileges etc.. to ensure genuinely fruitful social justice.
At present it is extremely unscientific, hap-hazard, and actually self-defeating, in that the meager resources of our poor developing country are getting frittered away, and we don't even know what corrective measure need to be taken----because we just don't have any statistical data to scientifically analize the 'outcome' of the utilization of our meager resources, often 'created' by denying the same to more deserving and worthy causes.

from:
Rajan Shete

Posted on: Apr 21, 2013 at 08:13 IST

"Consultancy charges"..huh..is the judiciary for sale?

from:
Krishna S Bala

Posted on: Apr 21, 2013 at 07:54 IST

the ex CJI should also be made accountable as in some fashion he was responsible for these assets...Surprising that IT dept does not have the powers to probe how the assets were acquired..Shame that ex CJI is still holding a top position in govt!!